Cutting Room: 3 cost cutting

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We’ve all heard of the mushroom theory of management – keep them in the dark and…

Judging from confusion about their futures, 3’s shop staff are probably now aware of the mushroom theory as well.

After spending millions of pounds on its roll out of stores, 3 UK’s outgoings appear to have hit the buffers and the network is now looking to make cost cuts across its business. 

No surprise there. Name a business that isn’t cutting its expenditure and I will show you a closing down sale.

3 is perhaps one of the least prolific spenders. It even makes all its staff pay their own bills to ensure its customer service is up to scratch.

But by sending out an email explaining it was exploring cut backs but refusing to answer specific questions, it is little wonder staff are assuming the worst. That email, combined with a freeze on recruitment doesn’t exactly send out a positive vibe.

Following the circulation of the email, the amount of noise coming from 3 this past week is unprecedented.

The rumour mills are quickly gathering pace, with most of the gossip coming from 3’s own shop floors. 

Speculation is rife about changes to the business, ranging from likely job cuts, pulling out of Northern Ireland and Scotland and even that 3 is about to be sold off.

Of course, the chances are that 3 staff are putting two and two together and getting five. But, they have every reason to be upset

Full article in Mobile News issue 436 (April 6, 2009).

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